GE Releases 2Q’23 Results

Today GE released second-quarter 2023 earnings. Below you will find some of the comments I made during the earnings call. To learn more about our results,?click here ?and for important information about forward-looking statements,?click here .?

The GE team turned in another strong quarter with double-digit growth in orders, revenue, operating profit, and cash… supported by services strength, robust market demand, and the lean transformation within our more focused businesses. In the first half alone, earnings have surpassed our full-year 2022 results. ?

GE Aerospace is growing rapidly as we execute on the ramp for customers. And, GE Vernova is strengthening pre-spin with record orders and improving profitability at Renewable Energy, and continued margin expansion at Power.

Based largely on year-to-date performance and expectations for continued strength in the second half, we’re raising full-year guidance today.

Big picture... there’s a clear sense of progress, passion, and purpose within our businesses. This was particularly evident to me when I was in France last month.

• At the Paris Air Show, GE Aerospace shared our bold vision to define flight for today, tomorrow and the future during our productive meetings with customers, suppliers, and investors. CFM’s RISE demonstrator program drew a lot of excitement, as it aims to reduce fuel consumption and CO2 emissions by at least 20% compared to today’s most efficient engines.
• I also met with our GE Vernova team for the Onshore Wind and Grid operating reviews, where we discussed opportunities and challenges with equal candor and transparency. We focused on how we grow these businesses profitably by applying real lean at the point of impact to achieve results. We’re also seeing lean’s impact in Offshore Wind. In our Saint Nazaire factory, the team has reduced cycle times to assemble nacelle roofs by nearly 50% through multiple kaizens. While it’s still early, I’m encouraged by examples like this across GE Vernova.

Day in, day out, we’re increasingly operating as GE Aerospace and GE Vernova... two industry leaders with large installed bases, where services represent about 70% of GE Aerospace revenue and about half of GE Vernova revenue. In addition to attractive economics, services keep us close to our customers – we understand the issues they’re wrestling with and how our technology is performing... which shapes our future roadmaps. And with our businesses executing, we’re advancing towards their launches as independent, investment-grade companies.

When I reflect on how far we’ve come, it always starts with the team. So, thank you to the entire global team – there’s a lot to be excited about as we look forward to the year ahead.?